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US court rules Dell's $24.9 billion buyout priced 22% below fair value

Investors originally sought appraisal on nearly 40 mn shares, some claimed a fair value was as high as $25 per share

Reuters  |  Wilmington 

Michael Dell and Silver Lake Partners underpriced their 2013 $24.9 billion buyout of Dell Inc by about 22% and may have to pay tens of millions to investors who opposed the deal for the computer maker, a Delaware judge ruled on Tuesday. The fair value of Dell's stock at the time of the buyout was $17.62 per share, not the original price of $13.75 per share, according to Delaware Vice Chancellor Travis Laster. The 114-page ruling stems from one of the most hotly contested appraisal cases, a legal strategy that has become a popular way for specialized investment funds to ...

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First Published: Tue, May 31 2016. 20:46 IST